Mapletree Industrial Trust completes joint purchase of 14 US data centres for $753m

Photographer: Simon Dawson/Bloomberg

Real estate investment trust company Mapletree Industrial Trust (MIT) has completed the joint purchase of 14 data centres in the US, the firm today announced. The deal – which was done through an unlisted single purpose trust, Mapletree Redwood Data Centre Trust – was valued at a total of $753.8 million.

In all, MIT’s investment in the joint venture (JV) with Mapletree Investments comes up to about $304.7 million. The company said it has used about S$153.1 million, or 98 per cent of its S$155.7-million private placement, to partially fund its net requirement of $$169 million with regard to the JV and acquisition. The remaining S$2.6 million, or 1.7 per cent of proceeds, has been used to pay placement-related expenses.

In October, MIT priced an upsized S$155.7 million placement of units at S$1.90 apiece. The REIT had planned to issue at least S$125 million of units between S$1.83 and S$1.90 per unit, with an over-allotment option of at least S$25 million. MIT closed at S$2.04 per unit on Dec 20, unchanged from the previous day’s close.

MIT is a REIT listed on the Main Board of Singapore Exchange that invests in a diversified portfolio of real estate used primarily for industrial purposes, whether wholly or partially in Singapore, as well as real estate-related assets.

The trust manager has said that its investment strategy will be expanded to include real estate and real estate-related assets used primarily as data centres worldwide beyond Singapore.

MIT’s portfolio of 85 properties in Singapore is valued at approximately S$3.78 billion as at 30 September 2017. These industrial properties include flatted dactories, hi-tech buildings, business park buildings, stack-up/ramp-up buildings and light industrial buildings.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.